Financial Management - Study Mode
[#656] Intangible assets such as copyrights, trademarks and patents are applicable for
Correct Answer
(B) amortization
Explanation
Solution: Intangible assets such as copyrights, trademarks and patents are applicable for amortization. Amortization is an accounting technique used to periodically lower the book value of a loan or intangible asset over a set period of time.
[#657] A schedule which shows interest constitutes reduced principal and unpaid balance is considered as
Correct Answer
(C) amortization schedule
Explanation
Solution: A schedule which shows interest constitutes reduced principal and unpaid balance is considered as amortization schedule. An amortization schedule is a complete table of periodic loan payments, showing the amount of principal and the amount of interest that comprise each payment until the loan is paid off at the end of its term.
[#658] Net income is Rs 2250 and noncash charges are Rs 1150 then net cash flow would be
Correct Answer
(A) Rs 1,100.00
Explanation
Solution: Bet Cash Flow = Net income - Non cash charges = 2250 - 1150 = Rs. 1100.
[#659] Lottery payoffs and payment for rental apartments are examples of
Correct Answer
(C) annuity due
Explanation
Solution: Lottery payoffs and payment for rental apartments are examples of annuity due. An annuity due is a repeating payment that is made at the beginning of each period, such as a rent payment.
[#660] Finance company providing loans at 12% with 2 compounding periods per year, periodic rate is classified as
Correct Answer
(C) 6% per year
Explanation
Solution: Finance company providing loans at 12% with 2 compounding periods per year, periodic rate is classified as 6% per year.